OTCPK:CDNT.F

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Canadian Tire Corporation

Executive Summary

Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. More Details


Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Canadian Tire Corporation's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CDNT.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.9%

CDNT.F

-4.8%

US Multiline Retail

-5.3%

US Market


1 Year Return

-1.2%

CDNT.F

16.8%

US Multiline Retail

10.4%

US Market

Return vs Industry: CDNT.F underperformed the US Multiline Retail industry which returned 19.5% over the past year.

Return vs Market: CDNT.F underperformed the US Market which returned 12% over the past year.


Shareholder returns

CDNT.FIndustryMarket
7 Day-3.9%-4.8%-5.3%
30 Dayn/a-2.1%-2.1%
90 Dayn/a11.7%1.7%
1 Year1.1%-1.2%18.7%16.8%12.9%10.4%
3 Yearn/a89.6%78.8%34.3%25.4%
5 Yearn/a87.4%64.4%73.7%54.3%

Price Volatility Vs. Market

How volatile is Canadian Tire Corporation's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Canadian Tire Corporation undervalued compared to its fair value and its price relative to the market?

17.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CDNT.F ($153.7) is trading below our estimate of fair value ($186.89)

Significantly Below Fair Value: CDNT.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CDNT.F is good value based on its PE Ratio (18.3x) compared to the US Multiline Retail industry average (22.8x).

PE vs Market: CDNT.F is poor value based on its PE Ratio (18.3x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: CDNT.F is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: CDNT.F is good value based on its PB Ratio (2.3x) compared to the US Multiline Retail industry average (3.2x).


Next Steps

Future Growth

How is Canadian Tire Corporation forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDNT.F's forecast earnings growth (14.9% per year) is above the savings rate (2.2%).

Earnings vs Market: CDNT.F's earnings (14.9% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: CDNT.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: CDNT.F's revenue (3.8% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: CDNT.F's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CDNT.F's Return on Equity is forecast to be low in 3 years time (18.6%).


Next Steps

Past Performance

How has Canadian Tire Corporation performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDNT.F has high quality earnings.

Growing Profit Margin: CDNT.F's current net profit margins (3.9%) are lower than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: CDNT.F's earnings have grown by 1.1% per year over the past 5 years.

Accelerating Growth: CDNT.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CDNT.F had negative earnings growth (-29.4%) over the past year, making it difficult to compare to the Multiline Retail industry average (43.6%).


Return on Equity

High ROE: CDNT.F's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is Canadian Tire Corporation's financial position?


Financial Position Analysis

Short Term Liabilities: CDNT.F's short term assets (CA$10.3B) exceed its short term liabilities (CA$5.5B).

Long Term Liabilities: CDNT.F's short term assets (CA$10.3B) exceed its long term liabilities (CA$9.3B).


Debt to Equity History and Analysis

Debt Level: CDNT.F's debt to equity ratio (165.1%) is considered high.

Reducing Debt: CDNT.F's debt to equity ratio has increased from 98.6% to 165.1% over the past 5 years.

Debt Coverage: CDNT.F's debt is well covered by operating cash flow (25.4%).

Interest Coverage: CDNT.F's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Canadian Tire Corporation current dividend yield, its reliability and sustainability?

3.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CDNT.F's dividend (3.06%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: CDNT.F's dividend (3.06%) is low compared to the top 25% of dividend payers in the US market (4.78%).


Stability and Growth of Payments

Stable Dividend: CDNT.F's dividends per share have been stable in the past 10 years.

Growing Dividend: CDNT.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.8%), CDNT.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CDNT.F's dividends in 3 years are forecast to be well covered by earnings (31% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.6yrs

Average management tenure


CEO

Greg Hicks (49 yo)

0.58

Tenure

Mr. Gregory Hubert Hicks, also known as Greg, serves as President, Chief Executive Officer and Executive Director at Canadian Tire Corporation, Limited since March 12, 2020. Mr. Hicks serves as Chair of th ...


Leadership Team

NamePositionTenureCompensationOwnership
James Christie
Executive VPno dataCA$2.97m0.014%
CA$ 968.8k
Stephen Wetmore
Honorary Director & Advisor0.58yrCA$9.69mno data
Mahes Wickramasinghe
Executive VP of International & President of Canadian Tire Financial Services4yrsCA$2.85m0.0050%
CA$ 349.2k
Gregory Hicks
CEO, President & Executive Director0.58yrno data0.0067%
CA$ 466.1k
Gregory Craig
CFO & Executive VP0.58yrno data0.013%
CA$ 865.1k
Rex Lee
Senior VP & Chief Information Officerno datano datano data
Lisa Greatrix
Senior Vice President of Finance & Investor Relationsno datano datano data
Jane Shaw
Vice President of Communicationsno datano datano data
Susan O'Brien
Senior Vice President of Marketing3.25yrsno data0.0054%
CA$ 372.0k
John Pershing
Executive VP & Chief Human Resources Officerno datano datano data
Robyn Collver
Senior Vice-President of Risk & Regulatory Affairsno datano datano data
John Salt
Senior Vice President of Supply Chainno datano datano data

0.6yrs

Average Tenure

62yo

Average Age

Experienced Management: CDNT.F's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Wetmore
Honorary Director & Advisor0.58yrCA$9.69mno data
Gregory Hicks
CEO, President & Executive Director0.58yrno data0.0067%
CA$ 466.1k
Cynthia Trudell
Independent Director1.42yrsCA$143.32kno data
Maureen Sabia
Independent Non-Executive Chairman of the Board13.58yrsCA$573.43kno data
Martha Billes
Independent Director40.75yrsCA$247.47k2.31%
CA$ 159.9m
Owen Billes
Non-Independent Director16.75yrsCA$200.74k0.022%
CA$ 1.5m
Diana Chant
Independent Director5.75yrsCA$250.50k0.0037%
CA$ 252.4k
James Goodfellow
Independent Director10.75yrsCA$319.37k0.0099%
CA$ 682.5k
Mark Derbyshire
Independent Director4.42yrsCA$216.00k0.000040%
CA$ 2.8k
John A. Furlong
Independent Director9.75yrsCA$220.63kno data
Claude L'Heureux
Non-Independent Director9.75yrsCA$197.00k0.014%
CA$ 962.6k
David Court
Independent Director5.17yrsCA$226.50k0.0036%
CA$ 246.2k

7.8yrs

Average Tenure

67yo

Average Age

Experienced Board: CDNT.F's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Canadian Tire Corporation, Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Canadian Tire Corporation, Limited
  • Ticker: CDNT.F
  • Exchange: OTCPK
  • Founded: 1922
  • Industry: General Merchandise Stores
  • Sector: Retail
  • Market Cap: CA$9.202b
  • Listing Market Cap: CA$6.915b
  • Shares outstanding: 60.81m
  • Website: https://www.corp.canadiantire.ca

Number of Employees


Location

  • Canadian Tire Corporation, Limited
  • 2180 Yonge Street
  • PO Box 770
  • Toronto
  • Ontario
  • M4P 2V8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTCTSX (The Toronto Stock Exchange)Common SharesCACADDec 1972
CDNT.FOTCPK (Pink Sheets LLC)Common SharesUSUSDDec 1972
CTC.ATSX (The Toronto Stock Exchange)YesClass A Non-Voting SharesCACADAug 1973
YAAADB (Deutsche Boerse AG)YesClass A Non-Voting SharesDEEURAug 1973
CDNA.FOTCPK (Pink Sheets LLC)YesClass A Non-Voting SharesUSUSDAug 1973

Biography

Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. The company operates in three segments: Retail, CT REIT, and Financial Services. The Retail segment retails gener ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:49
End of Day Share Price2020/10/28 00:00
Earnings2020/06/27
Annual Earnings2019/12/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.